Netflix is in a descending broadening wedge pattern. It is looking to complete the third leg down which will then provide a huge bounce and breakout of the trend. The stock's movement is very weak and overextended but needs the market to pullback as well to carry this down. I am looking at 300 as an area to cover and then reshort any short-term bounce off it.
Comment:
I am looking for the 50MA on Daily time frame to move up to $300-$305 by the time the price comes down to that $300-$305 level. That is where I expect support. Currently the price is $339.85 and the 50MA is at $293.34. This means that it could take a few weeks to bring the 50MA up to $300-$305 and the price down to $300-$305 (10-12% drop).